You are here

BlackRock data leak also ensnared Envestnet financial advisers

SL_ BlackRock Inc  _220119_56.jpg
BlackRock Inc's data leak has reached Envestnet Inc, a technology provider that serves financial advisers.

[NEW YORK] BlackRock Inc's data leak has reached Envestnet Inc, a technology provider that serves financial advisers.

Envestnet was informed by BlackRock that some adviser information was inadvertently released, Estee Jimerson, managing director and head of asset manager distribution at Envestnet, said in statement issued Tuesday.

"We are engaged with BlackRock to better understand the content and the advisors who were included in the document," she said. "BlackRock is in the process of informing impacted firms and we are closely monitoring the situation."

Bloomberg News first reported Friday that BlackRock inadvertently released names, email addresses and other information on about 20,000 financial advisers who do business with the firm's iShares exchange-traded funds unit. That number includes the Envestnet-linked advisers. In total, Envestnet serves more than 92,000 advisers.

sentifi.com

Market voices on:

The leak included information on about 12,000 advisers who are clients at LPL Financial, the largest US independent broker dealer. LPL informed advisers over the weekend that BlackRock posted details about some of them on its website.

Envestnet's disclosure demonstrates the extent of BlackRock's slip-up, which the asset manager attributed to human error. In a statement issued Monday, BlackRock said it "recognises the seriousness of the error and we deeply regret that it occurred. We always seek to treat the information entrusted to us with great care."

The firm declined to comment further on Tuesday.

In November, Envestnet and BlackRock entered a partnership to provide financial advisers with technology. As part of that arrangement, BlackRock agreed to acquire an equity stake of about 4.9 per cent in Chicago-based Envestnet.

BLOOMBERG